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A&D Weekly News & Transactions - Week 37
Industry Headline News
Northrop Grumman Eyes 25,000 Rocket Motors Annually as it Adds 57,000-Square-Foot U.S. Facility
Sept. 12, 2026 - Northrop Grumman opened a 57,000-square-foot Propulsion Innovation Center in Elkton, Maryland, as part of a $100 million investment to expand solid rocket motor (SRM) production and increase on-site design and manufacturing capacity by 25%. The facility employs 250 engineers and is expected to support more than 30% staffing growth as the company expands production of tactical missile and hypersonic propulsion systems. Northrop Grumman plans to increase annual SRM production from approximately 13,000 motors in 2024 to more than 25,000 by 2029, while raising annual solid rocket propellant production from 30 million pounds to nearly 50 million pounds by 2028. (Interesting Engineering)
Debrief: Document Details Demand Bolstering Major F‑15 Contract
Sept. 9, 2026 - The U.S. Air Force increased the ceiling of Boeing’s F-15 Eagle Crest contract from $18.28 billion to $39.28 billion for F-15 procurement and modernization, while potential foreign military sales could add another $91.95 billion. The contract consolidates F-15EX production, international F-15 sales, F-15E upgrades, modification kits and future requirements through the late 2030s, with the Air Force now planning to purchase up to 267 F-15EXs. Modernization efforts include upgraded satellite communications, GPS, data links, sensors and electronic warfare capabilities, as well as new counter-drone and other technologies. (Aviation Week)
Andreessen- and Thiel-Backed Defense Startup Opens U.S. Missile Factory as it Exits Stealth
Sept. 9, 2026 - Covenant, a defense technology startup, announced a new 105,000-square-foot factory in Dallas and $250 million in funding to expand lower-cost missile production. The company plans to begin serial production of its Anthem long-range cruise missile in Q1 2027, producing 1,000 missiles in its first year and eventually scaling to 5,000 annually. Covenant also announced two Department of Defense agreements to accelerate Army testing and adapt the Anthem for Navy maritime use. (CNBC)
GE Aerospace to Buy Castings Supplier for Nearly $12B to Tackle Engine Bottleneck
Sept. 8, 2026 - GE Aerospace agreed to acquire castings supplier Consolidated Precision Products (CPP) for $11.75 billion, bringing a key part of its engine supply chain in-house to increase production capacity. CPP supplies precision castings for GE’s LEAP and GEnx engines and generates about 70% of its revenue from commercial and defense engines, with GE expecting CPP to generate approximately $2 billion in revenue in 2027. The acquisition, GE Aerospace’s largest since becoming a standalone company in 2024, is expected to help address ongoing engine supply constraints and support rising demand for new engines and aftermarket parts. (Reuters)
Weekly Transaction Review
| No. | Parties Involved | Transaction Metrics | Location | Segment | ||
| Target [Parent] Acquirer [Parent] |
Price ($M) |
Price/ Revenue |
Price/ EBITDA |
Target | Target | |
| 1 | CPP [Warburg Pincus, Berkshire Partners, Blue Point Capital] GE Aerospace |
$11,750.0 | 5.9x | 26.0x | Cleveland, OH | Machined & Cast Parts |
| 2 | Ratel Robotics Swarmer |
$224.0 | - | - | Kyiv, Ukraine | Unmanned Vehicles |
| 3 | Saturn Fasteners Poggipolini |
- | - | - | Burbank, CA | Components & Subsystems |
| 4 | KEC Harwin |
- | - | - | London, United Kingdom | Connectors |
| 5 | Toolcraft Machining Schneider Elite Machining Group [Schneider Resources Holding] |
- | - | - | Germantown, WI | Machined & Cast Parts |
| No. | Target Descriptions |
| 1 | CPP is a manufacturer of highly-engineered components and sub-assemblies for private sector and U.S. federal government aerospace and defense markets. The company produces complex super alloy, aluminum, magnesium, and steel components for a wide variety of military and commercial aircraft, weapon systems, regional/business jets, and helicopters. |
| 2 | Ratel is a manufacturer of unmanned ground vehicles (UGV) for private sector and international government defense markets. Its portfolio includes several modular UGVs that are currently being used for battlefield logistics, casualty evacuations, reconnaissance, drone launching, and demining. The company is also developing two unmanned aerial vehicle (UAV) variants, mobile workshops, and solar-powered trailers. |
| 3 | Saturn Fasteners manufactures precision externally threaded aerospace fasteners, including bolts, screws, studs, taper pins, clevis pins, and custom OEM products. The company offers standard AN, NAS, MS, metric, and proprietary product lines, including TORX and TORX PLUS drive-system fasteners, across a range of aerospace-grade materials. |
| 4 | KEC designs and manufactures EMC backshells, panel fittings, and interconnect components for aerospace, defense, and other high-reliability applications. The company offers circular and D-type backshells, bulkhead fittings, shielding, sleeving, braids, conduit systems, and custom interconnect solutions engineered for demanding electromagnetic and environmental requirements. |
| 5 | Toolcraft Machining manufactures medium- to large-scale complex components for aerospace, defense, energy, and other demanding industrial applications. The company specializes in CNC turning, horizontal and vertical milling, 5-axis machining, and precision inspection for parts measuring up to 93 inches in diameter and weighing up to 44,000 pounds. |
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